Posted: July 13th, 2021
This essay will conduct valuable information from the topic called “White Collar Crime”. I shall provide info about the white collar crime, which will give you something to get you on track. According to the FBI (2016), white collar crime refers to monetarily roused, peaceful wrongdoing conferred by business and government experts. The three topics that I will be discussing are: Corporate crime, Typical investment fraud, and Market Manipulation (Gottschalk, 2016) .
The increase in white collar financial, political and cybercrime is observed. The extensive usage of technology for trading and business has also instigated the escalation of cybercrime activities (Yar, 2019) . The business and individuals are prone to numerous risks of financial losses through white-collar crimes. The laws and regulation to reduce white-collar internet crime should be improved and implemented (Gordon, (1973).) . The process of recoup of losses for victims of cybercrime is complicated and could be very time consuming, not to mention very costly. Although, after winning the lawsuit, lawyer fees can be asked to be compensated, but in the beginning, the lawyer fees are the company’s or individual’s responsibility. It requires adequate measures for dressing of the grievances (Scandal, 2015) . The involvement of political parties in personal and political white-collar crimes are challenges for an effective legal system. The economic conditions and lack of jobs lead to vocational crimes (Van Slyke, 2016) .
The basic explanation of corporate crime is; it is a white-collar crime. Therefore,
corporate crime is Defined by Hagan as, a crime within a legitimate occupation on behalf of
one’s employer (Hagan, 2018) . These crimes are disciplined by the government by administrative, civil or
criminal law. Corporate crimes should not be confused with occupational crime. If a corporate
official, such as the corporation President or Finance Officer, breaks the law while working for
the corporation for the benefit of that corporation that is known as a corporate crime. But when
any of the same individuals violates the law for personal gain, then that person has committed an
occupational crime (Snider, 2000) . Corporate crime involves corporation and not individuals and as such its
perpetrators cannot be sent to prisons as occupational criminal offenders.
Close sources from (FBI:, 2016) explains, “For the market manipulation, it’s “pump and dump” plans depend on the control of lower-volume stocks on little finished the-counter markets”. The fundamental objective of market control fakes is to misleadingly blow up the cost of the penny stocks with the goal that the schemers can offer their offers at a vast benefit. The “pump” includes selecting accidental financial specialists through false or beguiling deals hones, open data, or corporate filings (White-Collar, (2016, May 03).) . A considerable lot of these plans utilize engine compartment techniques where dealers—who are paid off by the plotters—utilize high weight deal strategies to expand the quantity of financial specialists and, accordingly, raise the cost of the stock. Once the objective cost is accomplished, the culprits “dump” their offers at a tremendous benefit and leave blameless financial specialists to pay.
White collar crimes do not include viciousness, however do include cash, for example, numerous cheats where cash is gained by false data. Any of different violations, for example, theft, extortion, or taking office hardware, conferred by business or expert individuals while working at their occupations (Walburg, 2015) . Always remember that important differences between a violent crimes and white collar crimes.
Corporate crime can be broken down into three main categories.
1.Crimes against individuals (the public)
Environmental violations- Can involve instances of air and water pollution – including oil
and chemical spills, and Radiological leaks (Wells, 2017)
The sale of unsafe products – knowingly selling products that are unsafe to the public
(i.e. – Ford Pinto sales.
Price fixing (the agreement between competitors of a product that raises, lowers, or
stabilizes equally among those competitors).
Multinational bribery – The payment of money to bribe foreign officials so a company
can get business contract in a country (Teichmann, 2018) .
Corporate Fraud – The intentional misrepresentation of company financial information or
activities to purposely mislead the public and increase the profits of the company (Wells, Corporate fraud handbook: Prevention and detection, 2017) .
2. Crimes against employees
Labor violations- These violations can include all types of discriminations in job or
promotional opportunities, occupation security and health hazards, intimidation of labor
activities, and wages and hour violations.
3. Crimes against other organizations (governmental or other corporations)
This includes violation of tax laws, misrepresentation of financial profit/loss statements,
Trade embargo violations.
These violations include industrial espionage (spying or the getting information on a
competitor by deceptive or illegal acts), and illegal competitive practices
Black’s law dictionary defines corporate crimes as, “Fraud and crime committed by
managerial and administrative personnel, professionals and public servants” (Dictionary, 1990). The two best
known examples of corporate crime are; Enron Scandal – involving accounting fraud which hid
t he company’s poor financial performance from investors and government regulators and the
2014 Apple price fixing case (United States Court of Appeals for the Second Circuit 13-3741).
The possible violations by corporations appears to be endless and takes place on a global scale
and will always occur as corporations put the needs of their individual companies over that of
honest procedure and the law
There are multiple types of white-collar crime and the case law has recognized several types. It is evident that insider trading has been recognized well before other cybercrimes as an important type of white-collar crime (Crime., (2016, May 03).). The provisions of law as well as the remedies available for white-collar crime are developed and improved frequently in today’s world. The changes in technology and online presence of shopping, trading, and e-commerce activity is also prone to fraud and numerous other crimes.
The online identities are used in several ways by criminals to unlawfully damage the financial, business, and trade position of individuals and corporations (Friedrichs, 2009). It us observed that case laws provide a consequential foundation for defining the scope and legal remedies of white-collar crimes. However, the latest legislation is perused in terms of highly effective measures for internet fraud. It is categorized as white-collar crime. The laws developed should be in line with the motive to provide required dressing of graveness of the victims. The role of executive branch for improving the implementation of white-collar crime cannot be underestimated (Friedrichs, 2009). There have been several improvements since the inception of cybercrime laws. The unlawful access, sharing, usage, and damage of identity should be brought under strict implications.
According to (Friedrichs, 2009) antitrust laws, monopolistic practices, unlawful use of information for financial or information gain should be strictly implemented. The white-collar criminals should be prosecuted under strict legal conditions. It also allows them to find ways in deceiving the system. The white-collar crimes are more dangerous in financial and business terms. The increasing amount of financial frauds and business crimes can only be controlled through effective law making. The white-collar criminal laws should consider the dressing of grievances in accordance with the financial and credibility losses experienced by victims.
Best way to recoup losses:
The increased usage of internet and cyber means to do business is prone to fraud at multiple levels. It is highly recommended to follow security measures in e-shopping and sharing of personal information regarding identification numbers, bank accounts, and social security identification numbers. The criminals use multiple ways to peruse their fraudulent desires. It is also noted that it is trivial process to recoup losses. Therefore, the requirement for appropriate system for information security is required (Herring, 2007). According to (Furnell, 2005) the increase in internet fraud is observed by the Internet Complaint Centre in United States. 48,252 complaints are filed with the center in 2002 with an aggregate of $17 million losses. The survey results in 2003 reveals that over 50% of the white-collar crimes are observed as acts of employees. The misuse of information security are increasing with the passing time.
The usage of private investigators in intent crime is a usual practice followed by a number of individuals and companies. The recoup in case of Bernard Madoff was also investigated through private investigators. The financial statement fraud to be perpetrated by Enron and Ponzi. It is also evident that internet based sharing of information has been under strict scrutiny by the legal framework of penalties developed by the Health Information Security. The penalties posed for unlawful access and sharing of information after noncompliance with the legal system allows the victims to recoup the losses in effective manner. According to (Chander, 2008) the LinkCo Inc. VS Fujitsu Ltd is also a notable example of the case in which the company obtained a wrongful coup of losses as per their claim in the court, it is also important to note that in some cases a wrongful judgment can be passes if it is not appropriately contested.
Occupational crimes versus vocational crimes comparison:
The occupational crimes are also categorized as career crimes. It is observed that at first place the criminals pursue the crimes for gains including the property crimes. The supplementary income gained through perusal of the crimes is also noted as the individuals require exciting income gains at the beginning of their careers as criminals. The matter of legitimacy and illegitimate income are least concerned by these criminals. These criminals also make a part of their income through these activities and later they also tend to generate hefty amounts of income from organized crimes including property and other financial gains (Israel, White collar crime: Law and practice. St. Paul, MN: West , 2015) . The career criminal’s pursue their income means through taking part in illegal activities, there is an increased risk in pursuing criminal career in terms of arrest and conviction. However, these criminals adopted multiple means to safeguard their chances of being arrested and convicted. One of the most important factors in career criminology is regarding the perusal of activities and increase in the amount of crimes over time.
The career criminals are associated with the fallow offenders and perceive their crimes as means of earning the required amounts for social, as well as financial appraisal. The acquisition of technologies and technology to perform crimes is also a significant element of their career path. These individuals use multiple means to adopt and acquire techniques for pursuing their careers to ultimate heights (Xu, 2010). The stages of life are also relevant to define the relationship between criminal activities, as well as, the desire to make criminal activities as their careers. The vocational criminals are usually involved in small scale of activities and they are not in possession of the latest techniques as well as the technology.
The targets of the vocational criminals are mostly observed as vulnerable and it is also observed, that they only pursue the acts of crime as a means to support their desires. The small scale crimes are also associated with vocational criminals. The overall economic, business and job market conditions are also a notable factor in promoting vocational criminals. Availability of appropriate education, job training courses, provisions of vocational trainings for gaining jobs, and availability of part time jobs for youth can reduce the amount of vocational crimes (Miller, Miller, J. M. (ED.).)It is not the case in career criminals.
Elements of political white-collar crime:
(Friedrichs, 2009)concludes that the political crime is committed on behalf of political parties. The element of personal gain is not present in the perusal of political white-collar crimes. The western democratic system also bares multiple flaws. The system eliminates the possibility of a one party system, however the two parties’ competition is also a reason to promote political corruption. The involvement of Politian in white-collar crimes for personal gains is also observed in democratic countries. The involvement of these lawmakers in criminal activities poses a great deal of challenge for the system. It also allows them not to develop strict laws to reduce and prosecute criminals. The political crimes of white-collar nature are also defined in terms of individual gains for economic enrichment. The second most relevant term is regarding the gain of political advantage for the party or a group within the party. All these political criminal elements combined pose a challenge for the system. This challenge is transferred into the efforts for making effective laws to restrain white-collar crimes in the countries.
The requirements for strict laws to reduce the amount of white-collar crimes especially cybercrimes are required. The criminal behaviors can be divided into career criminals and vocational crimes. The usage of latest techniques and technology are associated with the career criminals. Both are distinct in their approach towards perusal of the activities. The personal gains and political crimes of notable parties in western democratic system pose a challenge for development of effective laws to reduce white-collar crimes in the society.
Evaluating Corporate Crime
Topology can be a very useful tool when it comes to evaluating corporate crime data. It aids law enforcement in identifying crime and then solving it. Another way it can help is by categorizing people by their varying behaviors and characteristics. In fact, this is undoubtedly the most useful tool in crime topology. Learning more about corporate crime and having the ability to classify and sort different details of crimes, criminals, and victims is extremely beneficial for any party involved.
Having a topology of corporate crime provides a database of all the information gathered surrounding that kind of crime. This is extremely beneficial because criminals, cases, victims, and other information can be searched in the database. Any specific aspect related to corporate crimes which have been recorded and saved in the database can then be used as reference or to help with solving other crimes.
Without a doubt, the criterion that is most significant is the classification of crime, criminals, victims and evidence. This is significant because without these categories being properly sorted, law enforcement and others relying on this information would not be able to handle corporate crimes as well. Thankfully, the different categories are all sorted out into useful databases that can be used in solving crimes and referencing back to old cases.
Overall, having a topology of corporate crime is tremendously useful for any party that is involved. Having detailed and categorized information about corporate crime at hand is a key for law enforcement or any similar parties who are involved. Being able to have the ability to search any specific detail about corporate crimes is very significant and can help out those involved immensely. Topology is undoubtedly a useful tool to have when it comes to evaluating corporate crime data.
Interrelationship between corporate fraud, abuse of power and corporate economic crimes
The corporate abuse of power, corporate fraud, and corporate economic exploitation are all interrelated with one another. Each of these forms of White Collar Crime causes a great deal of suffering for different segments of society. Unfortunately, even when criminals get caught, innocent people are still always negatively affected in some way by White Collar Crime.
Typically, corporate abuse of power causes the majority of its suffering for hardworking employees who are oblivious to its occurrence. This segment of society just keeps their heads down and works for the corporation who is somehow taking advantage of them in a negative way behind the scenes. This can really cause workers to suffer in a number of ways. One example would be the working conditions. The corporation could abuse its power by worsening working conditions for its employees so the people at the top can make more money. For certain, anytime there is a corporate abuse of power occurring, the unknowing workers are the ones who end up suffering most.
Often times, when corporate fraud is occurring any and all honest workers within the company are the segment of society that gets hit most with suffering. Unfortunately, these innocent victims can be hurt in a number of ways including; losing their jobs, losing time, losing money, and a lot of other detrimental things. Corporate fraud includes stealing, manipulating, and plenty of other malicious acts that cause suffering for their workers.
Another White Collar Crime which causes suffering for some segments of society is corporate economic exploitation. With this type of crime, the segment of society that primarily suffers is public consumers. Regrettably, this segment of society is affected the most because they are being taken advantage of by corporations. These people are manipulated or tricked through corporate economic exploitation and end up suffering financial losses and in some cases can even be harmed.
In conclusion, I can whole heartedly say that corporate abuse of power, corporate fraud, and corporate economic exploitation are all interrelated with one another cause plenty of suffering for different segments of society. Honestly, each of these situations is horrible and in their own ways can each hurt people really severely. Overall though, I can say that it usually are innocent segments of society that end up suffering the most from all of these different White Collar Crimes.
Types of retail crime and service fraud committed by small businesses
There are many different types of retail crime and service fraud committed by small businesses. The people committing the different crime or fraud as well as the victims can vary greatly. There is a wide range in the severity of the damage caused from the different infractions by small businesses. Retail crime and service fraud can be extremely devastating to its victims or it can be a smaller scale problem. Either way, they are undoubtedly White Collar Crimes and should be dealt with as so.
One typical form of retail crime and service fraud is when small businesses tack on unwarranted, hidden fees to their customers’ bills. Not only is this act unethical, but it is illegal because they are technically trying to get away with stealing from the customer. More often than not, the customer unknowingly just pays the sum, or they pay it and don’t feel like putting up a fight with the business to have it taken care of. This is a very common form of retail crime committed by small businesses and it negatively affects a lot of consumers.
Another example of retail crime and service fraud is when small businesses are untruthful about aspects of their product or services. A lot of the time, these businesses false advertise, or seize to mention certain things about their business or what they are selling to consumers. This is illegal on many levels and is very common in many small businesses throughout the world. Typically, small businesses get away with these forms of retail crime and service fraud because it’s so difficult to identify, and victims usually don’t know how or aren’t willing to deal with these issues.
Lastly, retail crimes and service fraud are very serious forms of White Collar Crime committed by small businesses. Unfortunately, these crimes affect a lot of people and usually go undetected or unpunished by law enforcement. It can be difficult for victims to identify these different instances of retail crime and service fraud, therefore making it even harder to enforce penalties on these small businesses. One thing for certain is that these different retail crimes and service frauds by small businesses are occurring all the time. Until they are clearly identified, and more frequently dealt with, they will not stop happening or happen less often.
Occupational crime and avocational crime as Corporate Crime
Occupational crime and avocational crime are two very different forms of White Collar Crime. In both circumstances the offender is being deceitful, and committing an illegal and malicious act. In the form of an occupational crime though, offenses committed within the context of a legitimate occupation and specifically made possible by that occupation. In avocational crime the offenses that are committed are not so much within the occupation, but more so in violation of the trust that is generally afforded the offender’s occupation.
First off, occupational criminals almost always occur in the form of illegal and deceptive business practices such as a business misrepresentation or adulteration of products. Usually this form of White Collar Crime can have a wide variation of negative effects on its victims (Lewis, 2001) . People who fall victim can be harmed physically, financially, emotionally, and other ways because of how serious occupational crimes can be.
Next, avocational crimes include crimes committed by large or small businesses such as retail crimes and service fraud (Israel, White collar crime: Law and practice. St. Paul, MN: , 2015) . These kinds of crimes usually involve manipulating customers into purchasing a product or service, when certain aspects of it aren’t what the customer thought. Being a victim of avocational crime can be devastating for those people. Most times, it’s very hard to fight back or find justice for avocational crimes.
To conclude, although occupational crime and avocational crime are indeed different forms of White Collar Crime, in both cases victims of these crimes are suffering in a number of ways. There is a blatant violation of trust between the criminal party and the victim. These crimes are very serious and are not always easy to identify or deal with. One thing for sure though, occupational crime and avocational crime are very real and frequent forms of White Collar Crime.
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